Financial Performance - Consolidated sales for Q3 2025 were $790.1 million, an increase of 6.6% compared to Q3 2024, with Brand Portfolio sales rising 18.8% and Famous Footwear sales declining 2.2%[4] - GAAP earnings per diluted share were $0.07, down from $1.19 in Q3 2024; adjusted earnings per diluted share were $0.38, compared to $1.23 last year[6] - Gross profit for Q3 2025 was $329.9 million, with a gross margin of 41.8%, down 230 basis points from the previous year[5] - Selling and administrative expenses were $311.3 million, representing 39.4% of net sales, an increase of 310 basis points year-over-year[11] - Adjusted operating earnings for the thirteen weeks ended November 1, 2025, were $26.3 million, compared to $58.3 million in the same period of 2024, reflecting a significant decrease[21] - The operating margin for the thirteen weeks ended November 1, 2025, was 1.5%, down from 7.7% in the same period of 2024[21] - The adjusted operating margin for the thirty-nine weeks ended November 1, 2025, was 2.6%, down from 6.9% in 2024[25] - The company reported a net loss attributable to Caleres, Inc. of $1,602 for the thirty-nine weeks ended November 1, 2025, compared to net earnings of $102,190 in 2024[28] Acquisition and Integration - The acquisition of Stuart Weitzman was completed for a preliminary purchase price of $108.9 million, contributing $45.8 million to Brand Portfolio sales[4] - The impact of the Stuart Weitzman acquisition and integration costs on adjusted earnings was $14,379 thousand for the thirty-nine weeks ended November 1, 2025[19] - Total charges related to the Stuart Weitzman acquisition and integration costs amounted to $7,669,000 for the thirteen weeks ended November 1, 2025[22] - The acquisition and integration costs related to Stuart Weitzman amounted to $7,669 for the thirty-nine weeks ended November 1, 2025[26] Cash Flow and Investments - Net cash provided by operating activities for the thirty-nine weeks ended November 1, 2025, was $40,454 thousand, a decrease of 46.5% compared to $75,855 thousand for the same period in 2024[18] - Total net cash used for investing activities increased significantly to $155,667 thousand, compared to $40,328 thousand in the prior year, primarily due to the acquisition of Stuart Weitzman for $108,858 thousand[18] - The company had borrowings under the revolving credit agreement of $748,500 thousand for the thirty-nine weeks ended November 1, 2025, an increase from $537,368 thousand in the previous year[18] - Cash and cash equivalents at the end of the period were $33,963 thousand, slightly up from $33,685 thousand at the end of the previous year[18] Sales and Inventory - Direct-to-consumer sales accounted for approximately 71% of total net sales, indicating a strong eCommerce performance across both segments[5] - Inventory at the end of the quarter was $678.2 million, up $92 million year-over-year, with a 2.6% increase excluding Stuart Weitzman inventory[11] - Net sales for the thirteen weeks ended November 1, 2025, were $790.1 million, an increase of 6.6% compared to $740.9 million for the same period in 2024[21] - Net sales excluding Stuart Weitzman were $744.2 million, compared to $740.9 million in the prior year, indicating a slight growth[21] - Comparable sales decreased by 1.2% on a 13-week basis compared to the prior year[21] - Comparable sales for the thirty-nine weeks on a year-over-year basis decreased by 3.0%[25] Earnings Guidance - The company expects continued tariff pressure on gross margin and earnings dilution from Stuart Weitzman, projecting a GAAP loss per diluted share of $0.13 to $0.18 for the full year[7] - Adjusted earnings per diluted share for FY25 are anticipated to be in the range of $0.55 to $0.60, including $0.60 to $0.65 dilution from Stuart Weitzman[8] - The guidance for fiscal 2025 indicates a GAAP diluted earnings per share range of $(0.18) to $(0.13) and an adjusted diluted earnings per share range of $0.55 to $0.60[33] - The company reported a diluted adjusted earnings per share, excluding Stuart Weitzman, of $1.15 to $1.25 for fiscal 2025 guidance[33] Profitability Metrics - Adjusted earnings for the thirty-nine weeks ended November 1, 2025, were $32,204 thousand, or $0.95 per diluted share, reflecting a decrease from $103,508 thousand, or $2.95 per diluted share, in the prior year[19] - The adjusted gross profit, excluding Stuart Weitzman, was $880,989 for the thirty-nine weeks ended November 1, 2025, compared to $946,934 in 2024[26] - The gross margin for the thirty-nine weeks ended November 1, 2025, was 43.4%, down from 45.5% in 2024, representing a decrease of 2.1 percentage points[25] - Total charges/other items for the thirty-nine weeks ended November 1, 2025, were $21,757, significantly higher than $1,593 in 2024[26]

Financial Performance - Caleres, Inc. has re-initiated its earnings and adjusted earnings guidance for the full-year 2025, projecting figures well below analysts' estimates [1] - For fiscal 2025, the company expects a loss per share in the range of $0.13 to $0.18 and adjusted earnings between $0.55 to $0.60 per share, which includes a dilution of $0.60 to $0.65 from the acquisition of Stuart Weitzman [3] Analyst Expectations - Analysts had anticipated earnings of $1.73 per share for the year, with net sales growth of 0.73% to $2.74 billion [3] - For the fourth quarter, the company expects a loss per share on both reported and adjusted bases, while analysts expect earnings of $0.27 per share for the quarter [2] Market Conditions - The company indicated that it expects continued tariff pressure on gross margin and earnings dilution due to the recent acquisition [1]

ST. LOUIS--(BUSINESS WIRE)--Caleres (NYSE: CAL), a market-leading portfolio of consumer-driven footwear brands, today reported financial results for the third quarter 2025. "Caleres delivered third quarter sales results that were ahead of our internal expectations, highlighted by organic sales growth in our Brand Portfolio segment, strong Lead Brands performance, sequential improvement in trends at Famous Footwear, and accelerated eCommerce momentum in both segments of our business,†said Jay Schmidt, presid ...

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Core Insights - Caleres, Inc. (CAL) is perceived as undervalued but is facing challenges in maintaining its market position due to the planned acquisition of Stuart Weitzman, which introduces significant risks related to increased debt levels [1]. Group 1: Company Overview - Caleres, Inc. is currently viewed as a cheap investment opportunity, but it is losing its solid footing in the market [1]. - The acquisition of Stuart Weitzman is a key factor contributing to the increased risks associated with Caleres, particularly concerning rising debt [1]. Group 2: Investment Analysis - The investment group "Value In Corporate Events" focuses on identifying actionable ideas from major corporate events such as earnings reports, mergers, and acquisitions [1]. - The group provides coverage of approximately 10 major events each month, aiming to uncover the best investment opportunities [1].

Core Viewpoint - Caleres, a leading footwear brand portfolio, is set to release its third quarter 2025 financial results on December 9, 2025, before market opening [1] Financial Results Announcement - The financial results will be announced before the market opens on December 9, 2025 [1] - A conference call will be held at 10 a.m. Eastern Time to discuss the quarterly results and provide a general business update [1] Participation Details - The conference call is open to investors, Caleres associates, media, and the public [1] - Participants from North America are specifically invited to join the call [1]

Core Insights - Caleres Inc. (CAL) shares experienced a significant increase of 9.4%, closing at $11.38, following a period of 20.3% loss over the past four weeks, indicating a strong recovery in investor sentiment [1][2]. Financial Performance - The company demonstrated strong earnings momentum with solid revenue growth, margin expansion, and robust cash generation, particularly from its Famous Footwear and Brand Portfolio segments [2]. - For the upcoming quarterly report, Caleres is expected to post earnings of $0.75 per share, reflecting a year-over-year decline of 39%, while revenues are projected to reach $770.44 million, marking a 4% increase from the previous year [3]. Market Position and Strategy - Caleres has effectively managed its inventory and maintained a sharp focus on profitability, which has enhanced investor confidence [2]. - The company’s diversified brand mix and healthy balance sheet position it well to sustain its upward stock trajectory amid improving consumer demand trends [2]. Earnings Estimates and Stock Movement - The consensus EPS estimate for Caleres has remained unchanged over the last 30 days, suggesting that the stock's price movement may not continue without trends in earnings estimate revisions [4]. - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [5].

Summary of Caleres Conference Call Company Overview - **Company**: Caleres - **Industry**: Footwear - **Key Executives Present**: Jay Schmidt (President and CEO), Jack Calandra (CFO), Liz Dunn (SVP of Corporate Development and Strategic Communications) [1][2] Key Financial Metrics - **Revenue**: Direct-to-consumer sales account for over 70% of total revenue - **Brand Portfolio Segment**: Represents 45% of total revenue - **International Operations**: Active in 68 countries with significant growth opportunities [3][4] Q2 Accomplishments - **Performance**: Strong performance in lead brands and direct-to-consumer channels, with double-digit growth in international markets - **Famous Footwear**: Elevated brands performed well during the back-to-school season [3][4] Strategic Initiatives - **Sourcing Migration**: Reduced sourcing from China to below 15% by the second half of the year - **Cost Savings**: Achieved $15 million in annualized structural savings, with half expected in the second half of the year - **Acquisition**: Completed the acquisition of Stuart Weitzman in August, focusing on integration and transition [4][5][8] Second Half Outlook - **Guidance**: Annual guidance suspended due to tariff uncertainties; however, Q3 expectations include a +1% comp in August, with low single-digit declines anticipated in September and October - **Gross Margin**: Expected to decline by approximately 240 basis points in Q3 due to tariffs, with improvement anticipated in Q4 as mitigating actions take effect [5][6][7] Market Trends - **Footwear Market**: Driven by newness and brand demand; consumers favor authentic and differentiated brands - **Lead Brands**: Continued strong performance from Sam Edelman, Allen Edmonds, Naturalizer, and Vionic, with ongoing investments in marketing and product development [11][14][17] Brand Portfolio Insights - **Premium Brands**: Strong growth in licensed brands like Vince and Veronica Beard, with Stuart Weitzman expected to enhance the portfolio - **Direct-to-Consumer**: Digital sales represent 30% of the brand portfolio, with a focus on omnichannel strategies [20][26][28] Inventory Management - **Famous Footwear**: Well-managed inventory with a tighter relationship between inventory levels and sales; challenges in the Brand Portfolio segment due to high initial inventory levels [24][25] Competitive Advantages - **Kids' Business**: Represents over 20% of total sales, with growth opportunities through stronger brand alignment - **Store Base**: Approximately 830 stores expected by year-end, with a focus on optimizing store performance and expanding the FLAIR format [36][38] Tariff Strategy - **Mitigation Actions**: Multi-pronged strategy to address tariff impacts, including sourcing adjustments, factory negotiations, and selective price increases - **Tariff Impact**: Anticipated gross margin impact from tariffs, with efforts to offset through SG&A opportunities [41][42] Conclusion - **Future Outlook**: Caleres is focused on leveraging its brand portfolio, optimizing operations, and navigating market challenges while maintaining a strong consumer focus [42]

Core Insights - Caleres, Inc. is considered one of the most undervalued retail stocks, with fiscal Q2 2025 results showing consolidated sales of $658.5 million, a decrease of 3.6% year-over-year [1] - The Brand Portfolio sales also experienced a decline of 3.5%, while the company gained market share in women's fashion footwear despite a tariff impact of approximately $10 million [2] - Famous Footwear sales fell by 4.9%, with comparable sales down 3.4% [2] Financial Performance - Consolidated sales for Q2 2025 were reported at $658.5 million, reflecting a 3.6% decrease compared to the previous year [1] - Brand Portfolio sales decreased by 3.5%, indicating challenges in this segment [1] - Famous Footwear sales declined by 4.9%, with comparable sales down 3.4%, highlighting a struggle in maintaining sales momentum [2] Market Position - The company has seen gains in the women's fashion footwear market share, suggesting a potential area of strength despite overall sales declines [2] - Management noted a tariff impact of around $10 million, which may have influenced sales performance [2] Analyst Perspective - Following the earnings release, KeyBanc analyst Ashley Owens maintained a Hold rating on Caleres, Inc. without assigning a price target, indicating a cautious outlook [3] - The company operates as a global footwear retailer through its Brand Portfolio and Famous Footwear segments, focusing on sourcing, designing, and distributing footwear for all ages [3]

Core Insights - Caleres will participate in the 2025 Global Consumer & Retail Conference starting October 8 in New York, hosted by Telsey Advisory Group and Santander Corporate & Investment Banking [1][2] Company Overview - Caleres is a market-leading portfolio of global footwear brands, including Famous Footwear, Sam Edelman, Stuart Weitzman, Allen Edmonds, Naturalizer, and Vionic, with nearly 1,000 retail stores and a strong online presence [3] Financial Performance - For the second quarter of 2025, Caleres reported consolidated sales of $658.5 million, a decrease of 3.6% compared to the previous year, with Brand Portfolio sales down 3.5% due to tariff impacts and a decline in Famous Footwear sales by 4.9% [5]